A Positive Confirmation Is More Reliable Evidence Than a Negative

question 102

Multiple Choice

A positive confirmation is more reliable evidence than a negative confirmation because:

• A) fewer confirmations can be sent out.
• B) the debtor's lack of response indicates agreement with the stated balance.
• C) the auditor has a document which can be used in court.
• D) follow-up procedures can be performed if a response is not received from the debtor.

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Definitions:

Defective Merchandise

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Apple iPhone

A smartphone brand developed by Apple Inc., known for its iOS operating system, multi-touch interface, and ecosystem of apps.

Manufacturing Plant

A manufacturing plant is an industrial site where goods are produced or processed, typically involving workers and machinery in the production process.

Valid Probability

A numerical value that accurately represents the likelihood of an event, correctly ranging between 0 and 1.